News Archive for December 4, 2012

China's Property Landed in Trouble
China's State Council has approved a change in property laws that could be hard on land-grabbing local governments and on developers—but good for hundreds of millions of long-suffering farmers.

Assembly Democrats Push Job Measures
Assembly Speaker Sheila Oliver said the state needs a multipronged approach to reinvigorating the economy and getting people back to work as the state jobless rate remains nearly two points above the national level.

Former Rochdale Trader Charged
Former Rochdale Securities trader David Miller was charged Tuesday by the U.S. attorney's office in Connecticut with wire fraud for an alleged unauthorized trade in Apple shares.

Adelson to Keep Betting on the GOP
After spending more than $100 million mostly on losing Republican election campaigns this year, casino billionaire Sheldon Adelson said he planned to stay in the game and double down on his political donations.

Law Firm Boies Schiller Rewards Associates
Associates at law firm Boies Schiller & Flexner are getting a nice little surprise in their bank accounts this week: year-end bonuses that top out at $250,000.

Lawyers Withdraw in Suit Against Dakota
A New York state judge allowed the two law firms representing a hedge-fund manager to withdraw from his lawsuit alleging discrimination by the Dakota co-op in Manhattan.

A Sale Sets the Stage
Pieces of New York City Opera's past will go up for auction as the company tries to climb out from under its financial burdens and remake itself as a smaller, leaner organization.

Discovery Pursues European Networks
Discovery Communications' pursuit of European television networks is a bet that expansion on the Continent will pay off as the region's economy recovers, its chief executive said.

LVMH Expands Loewe Brand
Spanish handbag maker Loewe, one of the smaller brands in the LVMH stable of luxury goods, is expanding globally, with new stores in Dubai and Rome, and on Tuesday it opened a new production facility in Spain.

Qualcomm to Invest in Sharp
Sharp agreed for U.S. chip maker Qualcomm to invest up to $120.4 million, in what is expected to be the first in a series of capital injections to shore up the Japanese electronics manufacturer's finances.

Intel Borrows $6 Billion to Help Fund Stock Buyback
Computer-chip giant Intel is borrowing $6 billion in part to buy back stock, as U.S. companies continue to make use of forgiving debt markets to make bigger payouts to their shareholders.

Baxter Buys Gambro for $4 Billion
Baxter agreed to buy Swedish medical-equipment maker Gambro for $4 billion, the biggest proposed acquisition in the U.S. company's history, as it aims to bolster its position in the market for kidney-dialysis products.

Voting Map Tossed Out Amid Gripes
A group tasked with reshaping New York City's election map voted to withdraw its first attempt after the plan was criticized as politically motivated among other reasons.

Senate Power-Sharing Pact Struck
New York state Senate Republicans agreed to share power with five Democrats, forming a coalition that will leave the GOP with substantial influence over the chamber but also open the door to more liberal legislation.

City Readies Housing for Sandy Victims
Superstorm Sandy victims will be given priority for about 2,500 vacant apartments owned by private landlords across New York City, under a landmark deal struck between property owners and government officials.

Firings Set Over 'Fast and Furious'
Four senior managers who oversaw the ill-fated federal gun-trafficking probe called "Fast and Furious" will be fired if recommendations from a disciplinary panel are accepted.

Speakeasy: Neil Young and Crazy Horse Ride to the Rescue
Neil Young says he was invited to perform at Madison Square Garden for the star-laden Sandy benefit on Dec. 12. But in his typical independent way, he's holding a more intimate benefit of his own in Atlantic City.

Scalpers Seek Profit on Tickets for MSG Sandy Benefit
After tickets to the benefit concert sold out within minutes Monday afternoon—and later appeared on StubHub for much higher prices—fans voiced their displeasure.

The Pop Scene: Spinning Gold, Rocking Out, Avoiding Moss
This week's Pop Scene calendar leads off with DJ Shadow spinning at the Brooklyn Bowl, plus Royal Trux in Greenpoint, Animal Collective at Terminal 5, and a little British group called the Rolling Stones at the Barclays Center.

Ryan, Rubio Seek Party Rebranding
Two of the Republican Party's most prominent voices, Rep. Paul Ryan of Wisconsin and Florida Sen. Marco Rubio, used dual speeches to lay out visions for broadening the GOP's economic message.

Fanfare for Comfort Food
Marcus Samuelsson is now bringing American fare to the table at Lincoln Center. His American Table Cafe opened two months ago, adding another dining option to Alice Tully Hall.

A Bed and Bone for Oprah
The publicist was waiting anxiously; the guests wondering about her whereabouts. "Where's Oprah?" they asked. This Oprah is a three-year-old yellow labrador, a graduate of Puppies Behind Bars and one of two service dogs being recognized at the Animal Medical Center's Top Dog gala.

Global Investors Face Local Snags
The dispute between the SEC and China over audit firms underscores the fact that markets remain in many ways local with sometimes widely differing rules, laws and standards.

'Master' Tribute at the MoMA
In the movies he writes and directs, Quentin Tarantino has been paying tribute to his cinematic role models for 20 years. On Monday night at the Museum of Modern Art, everyone settled the score with Mr. Tarantino by paying tribute to him.

Cooking With Limits
This year's Food Allergy Ball, which raised $4 million at the Waldorf-Astoria, honored the Massachusetts-based chef Ming Tsai, who opened his popular restaurant Blue Ginger in Wellesley in 1998.

Dubai Again Is Setting Its Sights High
Seeking to cement its position as a Middle East center for transport and tourism, Dubai has unveiled several grandiose construction projects that bear some of the hallmarks of the debt-laden boom years that nearly brought the emirate to its knees.

Defense Bill Draws White House Objections
The Senate approved legislation establishing policy for the Defense Department, voting to set limits on the government's ability to detain U.S. citizens without trial, while also blocking transfers from Guantanamo.

Clerks Bring L.A. Port to a Halt
Pacific Mountain Logistics, a small California warehousing company, is one of many businesses feeling the affects of a strike at the twin ports of Los Angeles and Long Beach, the biggest U.S. port complex.

Germany's Merkel Begins Election Drive
Germany's ruling conservative party closed ranks behind Angela Merkel with a solid demonstration of unity, boosting her bid for a third term as chancellor by nearly unanimously re-electing her as party leader.

Hype Better Than Sales for Target-Neiman Marcus Tie-Up
The unusual designer fashion collaboration between Target and Neiman Marcus began with a whimper this past weekend, according to analysts, far from the bang the companies were counting on to improve holiday sales.

Airlines Try to Clip Criminal Litigation
International aviation officials will take a big step Wednesday in their campaign to shield pilots and airline officials against criminal cases stemming from flight accidents around the world.

Thomson Reuters Tie-Up Pressures Scion
The reluctant heir to the business empire that controls Thomson Reuters is stepping in as the combined firm struggles to deliver on the promise of the 2008 merger.

Now Hiring? Tips for Conducting Interviews
It's not always a candidate's fault when a job interview goes south. Hiring managers can be to blame. Now there are new techniques to help prevent the process from going wrong.

GOP Immigration Push Grows
Congressional Republicans and their allies, laying the groundwork for an immigration bill, are preparing to restart talks with Democrats in the House and are raising money to support GOP lawmakers who back changes to immigration laws.

Speaker's Deficit Plan Irks Conservatives
Conservatives took aim at the House speaker's deficit-reduction proposal in the fiscal cliff talks, a dispute that was aggravated by his decision to remove some conservatives from prized committees.

Armenia Embraces Syrian Refugees
Shockwaves from Syria's war are echoing through Armenia, a Christian country hundreds of miles away, as the government welcomes ethnic Armenian refugees even amid fears that a larger wave could strain the country's resources.

Hollywood's Guide to the Bowls
In our annual Bowl primer, we use movies to explain the matchups; Northern Illinois in "Almost Famous"; Notre Dame in "Never Say Never Again"; Duke and Cincinnati in "Hoop Dreams."

Gaza Fight Hints at Hezbollah Arsenal
The recent battle between Israel and Islamist forces in the Gaza Strip revealed not only the Palestinian militants' new arsenal, but also shed light on the potentially greater military capabilities of Hezbollah, the Shiite political and militant group in Lebanon.

Aussie Dollar Rallies on Central Bank Signs
The Australian dollar rallied Tuesday after the country's central bank cut interest rates but gave few signs that it plans further cuts in the coming months.

Warren Likely to Get Senate Banking Panel Seat
Elizabeth Warren, the bank critic who will become the Massachusetts junior senator in January, is expected to gain a seat on the Senate Banking Committee, according to three Senate Democratic aides.

Weighing Consequences of Temporary Cliff Dive
Some Democrats say the White House and Congress could wait until January to complete a deal on the fiscal cliff, without doing much harm to the economy. But such a move could hurt the economy in intangible ways, critics say.

U.S. on Alert for Canadian Drugs
The White House has alerted police and border agents to prepare for a possible influx of addictive pain drugs from Canada, where cheaper, generic versions of OxyContin will soon become available.

It's a Rotten Time to Be Rich
New local television deals have made baseball's upper class bigger and richer. But as more teams retain homegrown stars with long-term contract extensions, fewer and fewer marquee players are reaching free agency.

Sacramento Mayor Fined in Ethics Breach
Sacramento Mayor Kevin Johnson has been fined $37,500 for failing to disclose $3.5 million in donations he solicited to help fund a new basketball arena and a schools program.

How Did Wall Street Do on Sandy?
Securities-market regulators are seeking details on the performance of banks' and brokers' disaster-recovery plans during Superstorm Sandy, including firms' ability to effectively trade when the NYSE is down.

Banks' Profits Up 6.6%
For the first time in three years, banks are getting a larger boost to their profit from traditional sources of revenue than from simply cutting back on funds set aside for bad loans.

Women Notch Progress in Legal, Medical Fields
Women account for a third of the nation's lawyers and doctors, a major shift from a generation ago when those professions were occupied almost exclusively by men, new Census figures show.

Fed Programmer Sentenced in Theft
Bo Zhang, a computer programmer who worked for the Federal Reserve Bank of New York, was sentenced to six months of home confinement after he admitted in May to stealing proprietary computer software from the bank.

New Rules Offer Hope to Mall Owners
A shopping-mall development boom during India's go-go years has left Mumbai, New Delhi and other major cities with a glut of retail space that owners have been struggling to fill.

Mumbai Financial District Turns North
India's financial capital is built on a peninsula that narrows sharply at its southern tip, a geography not dissimilar to Manhattan. And like some New York banks that have left Wall Street for Midtown, Mumbai's financial elite are heading north.

Photos of the Day: Dec. 4
In today's pictures, a worker checks mushrooms in Belarus, a man wearing a Prince William mask is escorted from a London hospital, parents welcome home their soldier son in Georgia, and more.

SEC: Efforts to Engage Chinese Watchdog Failed
The Securities and Exchange Commission said its Chinese counterpart, the China Securities and Regulatory Commission, has been "unable or unwilling" to provide documents the SEC requested in connection with 16 different commission investigations dating to 2009.

Ideas on Her Shoulders
Ronaldus Shamask creates clothing of concentrated simplicity that is at once historical and abstract. A retrospective of his creations are now on display at the Philadelphia Museum of Art.

Ronaldus Shamask: Ideas on Her Shoulders
Ronaldus Shamask creates clothing of concentrated simplicity that is at once historical and abstract. A retrospective of his creations are now on display at the Philadelphia Museum of Art.

Canadian Dollar Up After BOC Rate Call
The Canadian dollar strengthened against the U.S. dollar, but nonetheless lagged most major currencies, after the Bank of Canada stood pat on its overnight policy rate and left its conditional tightening bias intact.

Napfa to approve only Certified Financial Planners
The National Association of Personal Financial Advisors will accept as Napfa-approved advisers only those with the Certified Financial Planner designation, reports InvestmentNews.

ECB WATCH
Draghi to Hold Fire on Rates Despite Dim Outlook
The ECB is widely expected to leave interest rates on hold for a fifth straight month Thursday, opting against providing further support to the euro zone's shrinking economy even as inflationary pressures wane.

BOC WATCH
As Exports Fail, An Inward Search For Growth
While Canada's central bank is forecasting stronger economic growth next year, it can't be entirely pleased about the two engines it sees driving that growth.

Flu Season Gets Off to Early Start
Flu season is off to its earliest start in nearly 10 years—and it could be a bad one, the CDC said. Health officials said suspected flu cases have jumped in five southern states.

Another Bad European Tax to Veto
Your editorial (Nov. 28) gets it right on one kind of unilateral, extraterritorial tax enacted by Europe. We believe the president should also take the same approach to European efforts—particularly France—to impose its domestic financial transaction tax (FTT) extraterritorially to U.S.-based transactions.

Giving to Charity and the Children
The client had more money than he ever intended to spend. So his adviser, Brian Kazanchy, helped him tackle two of his biggest goals: Donating to charity and passing money to his two daughters as tax efficiently as possible.

Unions and Results: There's No Clear Line
I hope that David Ellison doesn't teach social science, for the California educator commits a cardinal sin of the discipline in his Nov. 27 letter ("I Have One Priority As a Schoolteacher"). Namely, Mr. Ellison confuses correlation with causation.

FedEx Details Buyout Program
Some FedEx employees in the U.S. will be eligible for up to two years of pay as part of a voluntary buyout program that the shipping company has said will shrink its workforce by "several thousand."

Fighting Fraud More Successfully
am writing to set the record straight about this administration's efforts to fight fraud in Medicare and Medicaid, in response to George LeMieux's "Lots of Talk, Little Action on Medicare Fraud" (op-ed, Nov. 28). What's clear is our aggressive antifraud efforts are beginning to pay off.

Democratic Gains in the Senate Are Hardly a Mandate
Regarding Juan Williams's "The Senate as a GOP Battleground" (op-ed, Nov. 27): As a Hoosier and a Libertarian, let me add some perspective to the debate about the Republicans' failure to win the Senate seat that Richard Lugar held for 36 years.

Investment Default Shows Risks in China Bank Sector
Angry bank customers in China who lost money on a failed investment product appear to have won a concession after days of protests that have drawn attention to the risks posed by banks' competition for deposits.

LNG Project of Progress, Petronas Moves Ahead
Progress Energy and Malaysia's Petronas, which are awaiting Canada's approval of their tie-up, said their proposed LNG export terminal off Canada's west coast is moving into the next phase of engineering.

Outlying India Developments End Up in Dispute
During the boom years, new developments funded partly with foreign money mushroomed outside major population centers in India. Today, many of those lay unfinished or empty, and in some cases, the Indian developers and their foreign partners are feuding.

Rio Arrests Allegedly Corrupt Brazilian Police
Authorities in Rio de Janeiro have arrested at least 59 state police officers accused of receiving bribes to look the other way or aid drug dealing and other crimes by gangs that occupy the city's sprawling hillside shanty towns.

Storm Leaves Mark, but Some Buyers Persist
Superstorm Sandy wrecked the basement of a warehouse that was in the midst of a condo conversion in TriBeCa. But soon after the water was pumped out buyers started coming back in force.

A Home With Traditional Touches
In a gut renovation of this Upper East Side apartment, the couple purchased fixtures and moldings to re-create the apartment's original look. The space, which inspired them to start a cookware company, is listed for just under $4 million.

Top U.S. Firms Are Cash-Rich Abroad, Cash-Poor at Home
Many U.S. firms are cash-rich abroad but cash-poor at home, and the SEC worries they haven't presented investors with an honest appraisal of their liquidity.

SEC Probe Puts China Listings in Doubt
The Securities and Exchange Commission's high-profile attack on the Chinese affiliates of five major accounting firms calls into question the future of China-based companies listing on U.S. stock exchanges.

Advisers Reach Out to Congress on Fiscal Cliff
As the so-called fiscal cliff nears and investors fret over deal impasse, some financial advisers are now leaning on Congress in hopes they can help break the logjam.

U.K. to Reveal Gas Power Plans
The U.K.'s government is expected to announce Wednesday plans for a major expansion of gas-fired power plants, backing away from a previous plan to phase out fossil fuels altogether from electricity generation by 2030.

Australia Cuts Interest Rates
Australia's central bank cut interest rates by a quarter of a percentage point to 3.0%, matching a low hit in the aftermath of the global financial crisis, as a fading mining boom weighs on the resource-rich economy.

Client's Job Loss Becomes a Planning Opportunity
Eric Heckman, a fee-only adviser and president of Heckman Financial & Insurance Services, helps a client who lost her six-figure income when her employer went through a merger and her job was cut.

U.K. to Fund Spending With Cuts
The U.K. government said it plans to boost investment spending on schools, transport and science, a day ahead of a planned budget statement that is likely to be dominated by weaker forecasts for economic growth.

Apple Expands iTunes, Adding 56 New Countries
Apple expanded its iTunes Store into 56 additional countries Tuesday, nearly doubling its geographical reach in a push into developing markets as it strives for more customers.

Oracle to Pay Dividends in December
Oracle said it will pay three quarters worth of dividends in December, including nearly $200 million to CEO Larry Ellison, joining other firms trying to get ahead of higher taxes next year.

French Police Make Terror Arrests
French police have arrested a man and his former girlfriend as part of an investigation into whether the suspected killer of seven people in and around the southern town of Toulouse in March had accomplices.

Japan Election Draws Record Number of Parties
Official campaigning for Japan's general election kicked off, but the crowded race is likely to result in a coalition government plagued by gridlock and policy stagnation.

Battle Blunted Libya Attack 'Talking Points'
The intelligence summary relied on by U.N. envoy Susan Rice after the attack in Libya was the fruit of a cautious process that had the effect of watering down the U.S.'s own intelligence.

Canadian Dollar Extends Gains as BOC Holds Key Rate Steady
Canadian dollar is modestly higher against the U.S. dollar as the Bank of Canada stood pat on its overnight policy rate while reiterating its somewhat hawkish tone in its outlook for the Canadian economy.

Muddy Waters: Still Short on Olam
Muddy Waters founder Carson Block said his firm continues to short shares in commodities supplier Olam International, despite Olam's plan to raise $1.2 billion in a rights issue.

Bank of Montreal Profit Tops Forecasts
Bank of Montreal's fourth-quarter profit jumped 41%, as capital-markets profits more than doubled and loan-loss provisions came in well below year-earlier levels.

India Poll Body Criticizes Govt
India's Election Commission has asked the federal government to suspend all its steps in Gujarat and Himachal Pradesh states to implement a project to directly transfer cash to the poor as they violate the country's poll code.

George Osborne's Budget Tribulations
The British budget has become a semi-annual process. The official one comes in the spring but there's also a not so mini version around now. And this year's may be less mini than most, with Chancellor of the Exchequer George Osborne having to deal with below-target growth and above-target deficits and no sign that either will return to stable trend anytime soon.

Brazil's Real Opens Stronger After Interventions on Monday
The Brazilian real opens stronger against the U.S. dollar as the market digests the results of the central bank's multiple interventions Monday.

FX GLOBAL CALL: Our Take on the Day's Big FX News
The FX Global Call covers the main talking points from a news meeting involving DJ FX Trader editors in New York, London and Singapore, as well as other FX hot spots when warranted.

Indian Shares End Higher
Indian shares closed higher after a slow start Tuesday, as Parliament began a debate on a motion brought by opposition parties against the government's decision to allow foreign supermarket chains to set up shop in the country.

Low Spirits Sap Champagne Sales
Champagne corks aren't exactly popping. In the first nine months of this year, shipments of the sparkling French wine fell 5% as the recession across much of Europe and the cooling of the luxury-goods boom took their toll.

Olam Delivers Dilutive Message
Commodities trader Olam, suffering from the attention of short seller Muddy Waters, has won the support of Singapore state investment group Temasek for a capital-raising plan—but other investors don't seem convinced.

Myanmar Finalizing New Mining Law
Myanmar will finalize proposals for its new mining law early next year as part of wide-ranging legislative reforms aimed at boosting investment in the rapidly liberalizing country.

BOE Warns on Bankers' Pay
Bankers' pay should better reflect the risks they are running and include incentives to ensure they keep an eye on their institution's long-term health, the Bank of England's Financial Policy Committee recommended this month.

China Tightens Reins on Macau
The Chinese government is increasing its scrutiny of Macau's casino industry and the junket operators that bankroll its high-rolling gamblers, the first sign of a crackdown on corruption by China's new leaders.

China Yuan up Late on PBOC Guidance; Trading Quiet
China's yuan rises against the U.S. dollar late Tuesday as the central bank guides the Chinese currency higher via a daily reference rate, but trading was quiet as the yuan hit the daily upper limit again.

GOP Makes Counteroffer in Cliff Talks
House Republicans made a deficit-reduction offer that calls for $800 billion in increased tax revenue, half of what Obama proposed. The offer was immediately rejected by the White House.

Asian Shares Fall
Asian markets were mostly lower Tuesday, taking a negative lead from the U.S., while Australia was lower after the Reserve Bank of Australia once again cut interest rates. The S&P/ASX 200 fell 0.6%.

Emerging Market FX Breaks Free of Euro Crisis
Emerging market FX used to follow the action in Europe slavishly. However, bets on Grexit and collapse are now being unwound and old, strong, correlations are waning.

Maldives to Take Over Airport Saturday
State-run Maldives Airport expects to take over the island nation's main airport Saturday, as a deadline given by the government to an Indian-Malaysian consortium to hand over the facility expires Friday.

Moody's Negative on India Banks
Moody's has maintained its negative outlook on India's banks, stating that slow economic growth, high inflation and a weak local currency will likely create more bad loans.

New Zealand Dollar up Late, Mirroring Australian Dollar Moves
The New Zealand dollar was trading higher late Tuesday in tandem with a rally in the Australian dollar, which rose after the Reserve Bank of Australia cut its interest rate and issued a neutral accompanying statement.

Royal Babies
Britain's Prince William and the Duchess of Cambridge, Kate Middleton, are expecting their first child, the palace has announced. Take a look back at other royal babies in British history.

House of the Day
Modern Refurbishment
This five-bedroom London townhouse with nine-meter swimming pool, underground parking and staff accommodation was built in 1992 but has recently been fully refurbished and modernized.